Mumbai: Raid at builder puts Rs 700 crore worth deals under scanner

TNN | Updated: Aug 3, 2019, 5:33 IST

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MUMBAI: The Income Tax department has claimed to have unearthed sham transactions worth Rs 700 crore, allegedly by a builder, in a three-day search and seizure operation. Forty premises, including those of related parties, were covered in the raid, said an official. Officials said the search yielded evidence related to receipt of 'On Money' (cash received) on sale of commercial and residential blocks, bogus unsecured loans taken, bogus long-term capital gains and other suspect transactions to evade income worth about Rs 700 crore, a press release issued by the government said. The builder had been arrested three years ago for alleged financial irregularities. In the latest case, the search allegedly unravelled peculiar transactions on which, by way of accounting jugglery, income on transactions to the extent of about Rs 525 crore was evaded. The 'On Money' receipt on sale of residential and commercial blocks amounting to Rs 100 crore has been corroborated during the search, said the release.

Officials also found accommodation loans meant to claim tax benefits. Such loans are bogus and are given or taken and entered into accounts books to avail tax benefit. Moreover, use of entry providers and hawala operators for entries of long-term capital gains by the promoters have been affirmed. Officials found jewellery worth about Rs 14 crore. The probe and search action are still in progress.